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October 2006


Following August's Magazine article concerning the possibility of making claims for refunds of V.A.T. paid on the `net take' of gaming machines for the eleven V.A.T. Periods up to December 2005, this month's article provides an update for Clubs which have already submitted a claim and for those which have not yet done so.
A decision made in the European Court of Justice in 2005 creates an opportunity to request repayment of V.A.T. paid to H.M. Revenue & Customs on gaming machine income. The `Linneweber' case found that, in Germany, under E.U. Law it was unfair to have different V.A.T. treatments between gaming machines sited in a Casino and those sited in other locations.

In the U.K., for a period of time, there was a disparity between certain types of gaming machines and as a result claims can be made for this period, i.e., for eleven V.A.T. Periods prior to December 2005.
H.M.R.C. are not inviting claims, and indeed, the A.C.C. is expecting there to be strong resistance from H.M.R.C. to accept claims. However, the sums involved are significant and it is important for Clubs to submit a claim promptly in order to obtain the maximum refunds in the event of claims being successful.

Clubs are experiencing varying initial responses from H.M.R.C. Officials from helpful to vaguely hostile. H.M.R.C. have already sent a `standard letter' to many Clubs which have submitted claim. This reply sets out four questions requesting Clubs to provide supporting information in respect of their claims.

To assist Clubs with responding to this standard letter, I have set out (right) a suggested reply. The `Model Reply' needs to be completed with the correct address and reference numbers and also with the information highlighted under Clause I .
Clubs wishing to receive this `Model Reply' should download a copy from our website, or alternatively, e-mail their request to

The A.C.C. recommends that Clubs who have not yet made a claim should read the August edition of the Magazine which includes a more detailed article on the subject an either contact their local H.M.R.C. office requesting the necessary forms to make an application for a claim, or contact their Accountants.



i am grateful to Mr. Peter Hornby of the Dunscar Conservative Club in Bolton for writing to me with details of the application of V.A.T. on room hire made by Clubs and Associations.
Mr. Hornby, rightly points out that this exemption of V.A.T on such hirings is rarely volunteered by H.M.R.C. However, we print below an extract from V.A.T. Notice 701/5 which may be of interest to many Clubs and Club Accountants and Auditors:-

"10. Hire of Rooms and Halls
What is the VA.T. liability of my supply of the hire of rooms and halls?
The hire of a room or hall is exempt from V.A.T. provided that:-

* the person to whom you are hiring the room or hall has exclusive occupation of it during the period of hire,
* the room or hall is not designed or equipped for sport or physical recreation, which excludes such places as gyms, sports halls, and,
* you have not "opted to tax" the building in which the room or hall is situated.

What is included in the exemption? This exemption includes:-
* . facilities such as a kitchen or bar area within the room or next to it, and,
* those fixtures and fittings that form a part of the hire (for example, lighting and sound equipment if the room is used as a discotheque):'

Should any Club be approached by a company known as "National Club Solutions Limited" regarding proposed property redevelopment, the A.C.C. strongly advises Clubs to refer any such proposals to this Association.